Back in January 2017, China’s financial authorities initiated their first crackdowns against domestic bitcoin exchanges, with a ban on mainland exchanges cryptocurrencies against the yuan coming shortly thereafter. Now, close to two years and three months later, a surge of CNY has been flowing back into the digital currency economy after the Shanghai Composite posting a 24 percent gain this week.
The Steady Rise of CNY Trade Volumes on Paxful and Localbitcoins
Since the increase in cryptocurrency volumes and some solid gains across the board, digital currency supporters have noticed a resurgence of Chinese yuan (CNY) pour into the cryptocurrency ecosystem. On March 17, the avid BTC trader Anton Pagi tweeted to his followers that the latest rally has been fueled by CNY. “Something to watch during this bull run, Chinese profits from their roaring stock market in recent weeks flowing into bitcoin,” Pagi detailed while explaining that exchanges dealing with CNY have “more than doubled in volume in the past week.” Moreover, the Shanghai Composite has spiked more than 24 percent and speculators believe investors are moving into alternative markets.
Paxful volumes 3/16/2019.
In addition to the statements from Pagi, data from a few different cryptocurrency data collection sites draw the same conclusions. For instance, Localbitcoins volumes have been steadily climbing since the second week of February’s low of 12.9 million yuan ($1.9 million). This week CNY volumes touched a high of 25.4 million yuan ($3.7 million) in trades during the 2-week period on March 16. Similarly, the peer-to-peer trading platform Paxful show a significant increase in CNY/BTC trade volumes as well after the lows last month.